Atkins accuses the SEC of undermining capital formation through regulation by enforcement and disingenuous registration offers.
“In fact, in the past, it actively undermined capital formation with regard to this asset class in the form of regulation by enforcement and disingenuous offers to “come in and register.””
Atkins criticizes the SEC for requiring firms to design disclosures for paper first, even under the new e-delivery rule.
“The SEC still assumes and sometimes requires that firms, in the first instance, will design disclosures for viewing on paper (whether it is paper that firms mail or, now with Reg E-Delivery, paper that customers can print from home printers).”
Atkins lists specific SEC requirements that perpetuate paper-first thinking, including font size and same-page rules.
“Other paper-as-the-standard disclosure rules talk about font size, relative prominence, and disclosures appearing on the same page.”